Question

The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is:
A. asset.
B. accrued.
C. prepayment.
D. contra asset.

Answer 1

Answer: The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is:

B. accrued.

Explanation: It is the accounting principle by which recognition of losses and gains is given based on time, regardless of having paid or collected.